- Gómez-Pinzón advised the Colibrí Consortium in the development of the legal structure that allowed the exchange of guarantees through the Colibrí platform.
- Colibrí is a blockchain technology platform created by the Fintech Framework Contract to develop the next generation of infrastructure for capital markets.
Bogotá, November 15, 2019 – Gómez-Pinzón Abogados , as part of the Colibrí Consortium , advised on the development of the legal architecture to transfer ownership over guarantees through the platform Colibrí , created by fintech Framework Agreement . Thanks to this architecture and the efforts of the Consortium , yesterday Framework Contract successfully completed the collateral exchange pilot in operations for OTC derivatives, becoming one of the first operations on blockchain for the derivatives market in the world.
In the pilot, “a financial entity transferred ownership of the guarantees to its counterpart using the Colibrí platform, while the collateral always remained under the custody of a trust company”, as reported by the Primera Página news agency.
The transfer of these guarantees was made with distributed book technology (DLT), on which Colibrí bases its operation, replacing the transfer process between accounts. This allows collaterals to be kept or exchanged immediately, without compromising book records while providing a record of collateral ownership.
The use of a platform such as Colibrí automates the operational processes of guarantee exchange, improves regulatory transparency, ensures the immediacy of the information and reduces operational risks. This pilot, therefore, marks a milestone in the technological development and auditability of operations in the derivatives market worldwide.
The Gómez-Pinzón team was made up of Ricardo Fandiño De la Calle (partner) and Cristian Mauricio Cruz (senior associate), members of the Practice Group Banking, Finance & amp; GPA Capital Market . In turn, the Firm was part of the Colibrí Consortium together with Framework Contract , 2TransFair , Precia , Sophos Solutions , Fiduciaria de Occidente , Porvenir , Skandia , Colfondos and Bancolombia .